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Change in composition of domestic product or change in NATIONAL INCOME by Industry of origin refers to change in relative significance (share) of different sectors of the economy. Generally, an economy is divided into three major sectors viz. primary, secondary and tertiary sectors.
Primary Sector includes agricultural and allied activities, Secondary Sector includes manufacturing industries and Tertiary Sector includes Services. With the development process, significance of primary sector declines while that of secondary and tertiary sectors increases. After independence, Indian economy has also experienced such changes.
The share of primary sector in GDP at Factor Cost (at 1999-2000 prices) which was 56.5 per cent in 1950-51 declined to 34.6 per cent in 1990 91 and then to 19.7 per cent in 2007-08.
The secondary sector’s share in GDP was 13.6 per cent in 1950-51 increased to 23.2 per cent in 1990-91 and further to 24.7 per cent in 2007-08. Tertiary sector’s share in GDP increased from 29.9 per cent in 1950-51 to 55.6 per cent in 2007-08, and in 2009-10 it was over 7 per cent.
When country attained independence, the share of basic and Capital Goods industries in the total industrial production was roughly one-fourth. Under the second plan, a high priority was accorded to capital goods industries, as their development was considered a pre-requisite to the overall Growth of the economy. Consequently, a large number of basic industries which produce capital equipment and useful raw materials have been set up making the country’s industrial structure pretty strong.
Social overhead capital broadly includes transport facilities, Irrigation systems, energy production, educational system and organisation and Health facilities. Their development creates favourable conditions for growth and also for better human living. The transport system in India has grown both in terms of capacity and modernisation. The railways route length increased by more than 9 thousand kms and the operation fleet practically doubled. The Indian road Network is now one of the largest in the world as a result of spectacular development of roads under various plans. India has also seen growth in Life- lixpectancy and Literacy Rate but Education has not expanded at a desired rate.
Since independence, significant progressive changes have taken place in the Banking and financial structure of India. The growth of Commercial Banks and cooperative credit societies has been really spectacular and as a result of it the importance of indigenous bankers and Money-lenders has declined. Since nationalisation, these banks have radically changed their credit policy. Now more funds are made available to priority sectors such as agriculture, small-scale industries, transportation, etc.
Changing trends in work force in india
- The analysis of recent census data 2011 reveals that overall rate of growth in workforce is 1.8% between 2001 and 2011 and it is observed to be marginally higher than that of the Population. Further, the rate of growth in work force during the 2001-2011 is lower than that of previous two decades (1980s and 1990s) – a deceleration. The rate of growth in the workforce as well as population has decelerated between 2001 and 2011. However, the rate of growth in workforce has always been higher than that of Population Growth during the last three decades. It means that there must be increase in work participation rate (WPR).
- In the context of Economic Reforms and a subsequent high rate of economic growth in the country, during 1990s and 2000s, one would have a reason to expect a high growth in workforce too in this period. But one has to note that there are two constrains in the growth of workforce. One is the growth of population, wherein at a given labour/workforce participation rate (a constant), labourforce or workforce cannot grow more than the rate at which population grow. The other constraint is the labourforce participation rate itself. Given the rate of growth in population, the rate of growth in labourforce depends on the change in the participation rate.
- Census classifies workers into two categories i.e. main and marginal workers. The main workers are those who worked for more than six months in a year and the marginal workers are those who worked for less than six months. The analysis of Census data shows that during the last two decades (1991-2011) the rate of growth in marginal workers is higher than that of main workers . The rate of growth in main workers had decelerated during 1990s when compared with previous decade (1980s), whereas among marginal workers it accelerated during the same period. However, it appears that there is revival of growth in main workers during 2000s but the rate of growth is still less than that of 1980s. On the other hand there is a deceleration in the rate of growth in marginal workers between 2001 and 2011 but the rate is still higher than that of 1980s and higher than that of main workers. The analysis shows that marginal workers growing faster than main workers. Marginal workers have grown to account for one-fourth of the total workforce in India in 2011.
- It is worth mentioning that unlike the NSSO’s recent estimates, Census data shows a marginal increase in the WPR between 2001 and 2011. As the rate of growth in total workforce is higher than that of population, the WPR is increasing, though it is a marginal increase. This marginal rise in overall WPR is, in fact, entirely due to increase in marginal workers’ WPR. Between main and marginal workers, the main workers’ WPR had in fact shown a decline since 1991 whereas there is a corresponding increase in marginal workers’ WPR during the same period. Thus, there is an increase of marginal workers’ share in the total workforce, particularly since 1991.
- It is observed from the census data that the occupational distribution in the total workforce is still tilted towards agricultural activities – more than half of the workforce is concentrated in agriculture. However, a striking feature of the trend is Growth and Structure of Workforce in India – Venkatanarayana and Suresh Naik Page 10 that there is a sharp decline in the size of self-cultivators and at the same there is a bulging agricultural labour category.
- It is observed that during the 2001-11, about 79 million is the net addition to the total workforce. Of the total net addition to the workforce, during 2001-11, one–third of it is absorbed in the agriculture and the rest in the non-agriculture. Thus, a large part of the increasing labour force is getting absorbed in non-agriculture. Relatively higher growth of workforce engaged in non-agriculture when compared with the agriculture is observed during the last three decades.
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The Indian economy has undergone significant structural changes in recent years. These changes have been driven by a number of factors, including economic reforms, technological advancements, and demographic shifts.
One of the most significant changes has been the decline in the share of agriculture in the economy. In 1991, agriculture accounted for over 50% of GDP. By 2019, this share had fallen to just 15%. This decline is due in part to the growth of other sectors, such as industry and services. However, it is also due to the fact that agriculture has become less productive. This is partly due to the fact that India’s land is relatively scarce and its Climate is not ideal for agriculture.
The decline in agriculture has been accompanied by a rise in the share of industry in the economy. In 1991, industry accounted for just 25% of GDP. By 2019, this share had risen to 30%. This growth is due in part to the government’s focus on industrialization. However, it is also due to the fact that India has a large and growing population of young people who are eager to work in factories.
The services sector has also grown rapidly in recent years. In 1991, services accounted for just 25% of GDP. By 2019, this share had risen to 55%. This growth is due in part to the rise of the information technology (IT) sector. However, it is also due to the fact that India has a large and growing middle class that is demanding more services, such as healthcare, education, and entertainment.
The structural changes in the Indian economy have had a number of positive effects. First, they have led to higher economic growth. Second, they have created more jobs. Third, they have helped to reduce POVERTY. Fourth, they have made India more integrated into the global economy.
However, the structural changes have also had some negative effects. First, they have led to increased inequality. Second, they have put a strain on the Environment. Third, they have led to a brain drain, as many skilled Indians have moved abroad in search of better opportunities.
Despite the challenges, the structural changes in the Indian economy are likely to continue in the years to come. This is because India has a number of advantages, such as a large and growing population, a young workforce, and a rapidly growing middle class. These advantages will help India to continue to grow and develop in the years to come.
In order to address the challenges posed by the structural changes, the Indian government needs to take a number of steps. First, it needs to invest in education and healthcare in order to create a more skilled workforce. Second, it needs to invest in Infrastructure-2/”>INFRASTRUCTURE, such as roads, bridges, and Airports, in order to improve connectivity and reduce poverty. Third, it needs to protect the environment and promote Sustainable Development. Fourth, it needs to address the issue of inequality and ensure that the benefits of economic growth are shared by all.
The structural changes in the Indian economy are a complex and challenging issue. However, the Indian government has the opportunity to address these challenges and create a more prosperous and equitable future for all Indians.
What is the Indian economy?
The Indian economy is the seventh-largest economy in the world by Nominal GDP and the third-largest by purchasing power parity. It is a Mixed Economy with a large public sector and a rapidly growing private sector.
What are the structural changes in the Indian economy?
The Indian economy has undergone significant structural changes in recent years. These changes have included a shift from agriculture to industry, a rise in the share of services in the economy, and a decline in the role of the government.
What are the benefits of these structural changes?
The structural changes in the Indian economy have led to higher economic growth, increased EMPLOYMENT, and improved living standards.
What are the challenges of these structural changes?
The structural changes in the Indian economy have also led to some challenges, such as increased inequality, Environmental Degradation, and social unrest.
What is the future of the Indian economy?
The future of the Indian economy is bright. The country has a young and growing population, a large domestic market, and a rapidly developing infrastructure. With the right policies in place, India is well-positioned to become one of the world’s leading economies in the coming decades.
What are the main sectors of the Indian economy?
The main sectors of the Indian economy are agriculture, industry, and services. Agriculture accounts for about 15% of GDP, industry accounts for about 30% of GDP, and services account for about 55% of GDP.
What are the main challenges facing the Indian economy?
The main challenges facing the Indian economy are poverty, inequality, Unemployment, and infrastructure. Poverty is a major problem in India, with about 20% of the population living below the Poverty Line. Inequality is also a major problem, with the richest 10% of the population owning about 60% of the country’s wealth. Unemployment is a major problem, with about 10% of the population unemployed. Infrastructure is a major problem, with the country’s roads, railways, and airports in need of repair.
What are the main opportunities for the Indian economy?
The main opportunities for the Indian economy are its large population, its young population, its growing middle class, and its rapidly developing infrastructure. The country’s large population provides a large market for goods and services. The country’s young population is a source of innovation and creativity. The country’s growing middle class is a source of demand for goods and services. The country’s rapidly developing infrastructure is making it easier for businesses to operate in the country.
What are the main risks facing the Indian economy?
The main risks facing the Indian economy are political instability, Corruption, and Climate Change. Political instability can lead to economic uncertainty and can discourage Investment. Corruption can lead to waste and inefficiency in the economy. Climate change can lead to droughts, floods, and other natural disasters that can damage the economy.
What are the main policies that the Indian government is implementing to address the challenges and risks facing the economy?
The Indian government is implementing a number of policies to address the challenges and risks facing the economy. These policies include:
- Investing in infrastructure
- Promoting education and skills development
- Reducing corruption
- Addressing climate change
The government is also implementing a number of policies to promote economic growth, including:
- Reducing taxes
- Deregulating the economy
- Investing in research and development
The government is also implementing a number of policies to promote social welfare, including:
- Providing healthcare
- Providing education
- Providing housing
The government is also implementing a number of policies to promote environmental protection, including:
- Reducing pollution
- Conserving energy
- Protecting forests
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The share of Agriculture In India‘s GDP has declined from over 50% in the 1950s to around 15% today. This is due to:
(A) The Green Revolution
(B) The Industrial revolution
(C) The Service Revolution
(D) The Digital Revolution -
The service sector is the largest sector of the Indian economy, accounting for over 50% of GDP. This is due to the growth of:
(A) IT and BPO industries
(B) Retail and tourism industries
(C) Financial services industries
(D) All of the above -
The manufacturing sector is the second largest sector of the Indian economy, accounting for over 20% of GDP. This is due to the growth of:
(A) Automobile and electronics industries
(B) Steel and cement industries
(C) Textile and garment industries
(D) All of the above -
The Indian economy is expected to grow at a rate of 7-8% in the next few years. This growth is being driven by:
(A) Increased investment in infrastructure
(B) Reforms in the financial sector
(C) Exports and Remittances
(D) All of the above -
The Indian economy is facing some challenges, such as:
(A) High Inflation
(B) Low productivity
(C) Poor infrastructure
(D) All of the above -
The government is taking steps to address these challenges, such as:
(A) Fiscal Consolidation
(B) Structural reforms
(C) Investment in infrastructure
(D) All of the above -
The Indian economy is expected to become the world’s third largest economy by 2050. This growth will be driven by:
(A) The demographic dividend
(B) The rise of the middle class
(C) The growth of the services sector
(D) All of the above -
The Indian economy is facing some risks, such as:
(A) Global economic slowdown
(B) Political instability
(C) Natural disasters
(D) All of the above -
The government is taking steps to mitigate these risks, such as:
(A) Diversifying exports
(B) Building resilience to natural disasters
(C) Strengthening the financial system
(D) All of the above -
The Indian economy is a bright spot in the global economy. It is expected to grow at a healthy rate in the next few years. However, it is facing some challenges and risks. The government is taking steps to address these challenges and risks.